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GM Reports Preliminary Fourth Quarter and Calendar Year 2008 Financial Results

Posted on: Thursday, 26 February 2009, 06:10 CST

Results reflect global economic crisis and industry-wide collapse in vehicle demand

Fourth quarter adjusted net loss of $5.9 billion, reported net loss of $9.6 billion

2008 adjusted net loss of $16.8 billion, reported net loss of $30.9 billion

Structural cost improvement in North America of $3.0 billion in 2008

DETROIT, Feb. 26 /PRNewswire/ --

Calendar Year 2008 2007* '08 O/(U) '07 ---- ---- ------------- Revenue (bils.): $149 $180 $(31) Adjusted automotive earnings before tax (bils.): $(10.4) $0.6 $(11.0) Reported automotive earnings before tax (bils.): $(16.3) $(1.9) $(14.4) Adjusted net income (bils.): $(16.8) $(0.3) $(16.5) Reported net income (bils.): $(30.9) $(43.3) $12.4 Reported earnings per share (diluted): $(53.32) $(76.52) $23.20 Adjusted operating cash flow (bils): $(19.2) $(2.4) $(16.8) * 2007 figures reflect continuing operations

General Motors Corp. (NYSE: GM) today announced its fourth quarter and calendar year 2008 financial results, which were affected by the dramatic deterioration in global economic and market conditions during the year, declining consumer confidence and a 50-year low in per-capita auto sales in the United States.

For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of $16.8 billion, or $29.00 per diluted share. This compares to an adjusted net loss of $279 million, or $0.49 per diluted share in 2007. The 2008 results were driven by the impact of the U.S. recession and subsequent global contagion. Including special items, the company reported a loss of $30.9 billion, or $53.32 per diluted share, compared to a reported loss of $43.3 billion, or $76.52 per diluted share in 2007, which included a non-cash special charge of $38.3 billion in the third quarter related to the valuation allowance against deferred tax assets.

"2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half," Chairman and CEO Rick Wagoner said. "These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business.

"We expect these challenging conditions will continue through 2009, and so we are accelerating our restructuring actions. At the same time, we are continuing our commitment to exciting, fuel-efficient cars and trucks, and the leadership in advanced propulsion technology."

GM total revenue in 2008 was $149 billion, compared with $180 billion in 2007. GM's core automotive business generated revenue of $148 billion in 2008, down from $178 billion in 2007. The revenue decline was predominantly due to the precipitous drop in sales amid record low consumer confidence in the U.S. and sharply lower sales across all of GM's operating regions due to economic turmoil in the global markets. Global industry sales in 2008 were down 5 percent, or 3.6 million vehicles, versus 2007 levels, and U.S. industry sales fell by 18 percent, or nearly 3 million units.

Fourth Quarter 2008 2007* '08 O/(U) '07 ---- ----- ------------- Revenue (bils.): $30.8 $46.8 $(16.0) Adjusted automotive earnings before tax (bils.): $(4.0) $(0.8) $(3.2) Reported automotive earnings before tax (bils.): $(6.4) $(1.2) $(5.2) Adjusted net income (bils.): $(5.9) $0.05 $(5.9) Reported net income (bils.): $(9.6) $(1.5) $(8.1) Reported earnings per share (diluted): $(15.71) $(2.70) $(13.01) Adjusted operating cash flow (bils): $(5.2) $(1.3) $(3.9) * 2007 figures reflect continuing operations

In the fourth quarter 2008, GM posted an adjusted net loss of $5.9 billion or $9.65 per diluted share, compared to adjusted net income of $46 million, or $0.08 per diluted share in the year-ago period. Including special items, the company reported a net loss of $9.6 billion, or $15.71 per diluted share in the fourth quarter 2008, compared to a net loss of $1.5 billion, or $2.70 per diluted share in the year-ago period.

The fourth quarter 2008 results reflect special items totaling $3.7 billion. Special charges include:

• $1.1 billion impairment charge primarily relating to actions being taken regarding the Hummer and Saab brands
• $1.0 billion charge relating to adjustments to the value of deferred tax assets in various countries outside of the U.S.
• $900 million of restructuring and capacity-related costs
• $660 million increase to the Delphi reserve relating to the valuation of future pension obligations
• $610 million of gross goodwill impairments in Europe and North America
• $533 million net gain relating to GM's portion of the GMAC bond exchange gain, net of an impairment taken on GM's holdings in GMAC

Details on all special items are included in the "Highlights" section of this news release.

Effective Oct. 1, 2008, GM discontinued the use of hedge accounting treatment, on a prospective basis, to comply with SFAS 133. This resulted in a positive net effect on fourth quarter earnings of $436 million.

In accordance with SFAS 157, GM incorporates its credit risk when measuring the fair value of its derivative liabilities. As a result of GM's increasing credit risk, the fair value of its derivative liabilities declined in the fourth quarter, resulting in a net gain of $1.4 billion.

GM reported revenue of $30.8 billion in the fourth quarter 2008, down from $46.8 billion in the fourth quarter 2007. Revenue from automotive operations totaled $30.6 billion in the quarter, compared to $46.5 billion from the prior year, largely driven by the sharp decline in global industry volume.

GM reports its automotive operations and regional results on a pre-tax basis, with taxes reported on a total corporate basis.

GM Automotive Operations

GM's global automotive operations posted an adjusted loss before tax of $10.4 billion in 2008 (reported loss of $16.3 billion), compared to adjusted income before tax of $553 million in 2007 (reported loss of $1.9 billion). In the fourth quarter 2008, GM's automotive operations had an adjusted loss before tax of $4.0 billion (reported loss of $6.4 billion), compared to an adjusted loss before tax of $803 million in the year-ago quarter (reported loss of $1.2 billion).

GM 2008 worldwide sales were 8.35 million vehicles, down 11 percent, or 1.01 million vehicles, driven by the industry-wide contraction in global vehicle sales. In 2008, 5.38 million vehicles, or 64 percent of GM's global sales, were outside of the U.S., up from 59 percent a year ago. GM's Asia Pacific (GMAP) and Latin America, Africa and Middle East (GMLAAM) regions each grew sales volume by nearly 3 percent, and more than 2 million vehicles were sold in Europe for the third consecutive year. Despite softer industry sales, GM continues to lead in emerging markets, posting market share growth in 14 of 26 of the emerging markets.

GMNA

Fourth Quarter 2008 2007 '08 O/(U) '07 ---- ---- ------------ Revenue (bils.) $19.3 $28.1 $(8.8) Adjusted earnings before tax (bils.) $(2.1) $(1.1) $(1.0) Reported earnings before tax (bils.) $(3.5) $(1.3) $(2.2) GM market share 21.0% 22.7% (1.7)p.p.

GM North America (GMNA) posted an adjusted loss before tax of $2.1 billion in the fourth quarter 2008 (reported loss of $3.5 billion), compared to an adjusted loss before tax of $1.1 billion in the fourth quarter 2007 (reported loss of $1.3 billion). These results were impacted by significant declines in U.S. industry volume, leased vehicle residual adjustments, increased incentives and unfavorable product mix, partially offset by favorable cost performance, SFAS 157 adjustments and foreign exchange. For 2008, GMNA posted an adjusted loss before tax of $9.4 billion (reported loss of $14.1 billion), compared to an adjusted loss before tax of $1.5 billion in the year-ago period, excluding special items (reported loss of $3.3 billion).

As a result of GM's ongoing restructuring initiatives to adapt to current economic conditions, significant actions have been taken to reduce its structural cost. In North America, GM reduced structural cost from $33.8 billion to $30.8 billion, or $3.0 billion, during 2008.

GME

Fourth Quarter 2008 2007 '08 O/(U) '07 ---- ---- ------------- Revenue (bils.) $6.4 $10.7 $(4.3) Adjusted earnings before tax (mils.) $(956) $(215) $(741) Reported earnings before tax (mils.) $(1,890) $(445) $(1,445) GM market share 9.1% 9.2% (0.1)p.p.

For the fourth quarter 2008, GM Europe (GME) posted an adjusted loss before tax of $956 million (reported loss of $1.9 billion) versus an adjusted loss before tax of $215 million in the year-ago period (reported loss of $445 million). The decline in fourth quarter earnings was largely attributable to the lower industry volume across the region, unfavorable model mix and unfavorable foreign exchange and commodity hedging, partially offset by strong cost performance. For 2008, GME posted an adjusted loss before tax of $1.6 billion (reported loss of $2.8 billion), compared to adjusted income before tax of $55 million in the year-ago period, excluding special items (reported loss of $524 million).

GMLAAM

Fourth Quarter 2008 2007 '08 O/(U) '07 ---- ---- ------------- Revenue (bils.) $4.7 $6.0 $(1.3) Adjusted earnings before tax (mils.) $(154) $424 $(578) Reported earnings before tax (mils.) $(181) $424 $(605) GM market share 16.2% 17.3% (1.1)p.p.

In the fourth quarter, GMLAAM posted an adjusted loss before tax of $154 million (reported loss of $181 million), down from adjusted income of $424 million in the fourth quarter of 2007 (reported income of $424 million). Fourth quarter results were impacted by lower industry volume in Brazil, Venezuela and other key markets, and unfavorable foreign exchange, offset by favorable model mix and pricing. For the year, GMLAAM posted adjusted earnings before tax of $1.3 billion (reported income of $1.3 billion), which was comparable to 2007 adjusted earnings of $1.3 billion (reported income of $1.3 billion). Despite a slowdown in the fourth quarter, GMLAAM achieved record revenue of $20.3 billion and sales volume of almost 1.3 million vehicles for the calendar year.

GMAP

Fourth Quarter 2008 2007 '08 O/(U) '07 ---- ---- ------------- Revenue (bils.) $2.6 $5.3 $(2.7) Adjusted earnings before tax (mils.) $(879) $72 $(951) Reported earnings before tax (mils.) $(917) $72 $(989) GM market share 7.2% 7.3% (0.1) p.p.

GMAP posted an adjusted loss before tax of $879 million for the fourth quarter (reported loss of $917 million), compared to adjusted income of $72 million in the year-ago period (reported income of $72 million). GMAP fourth quarter earnings were impacted by lower industry volume, unfavorable pricing, unfavorable foreign exchange and commodity hedging, partially offset by favorable model and mix and continued favorable cost performance. For the year, GMAP posted an adjusted loss before tax of $664 million (reported loss of $800 million) compared to adjusted income of $744 million (reported income of $681 million) for 2007.

GMAC

In the fourth quarter, GMAC Financial Services (GMAC) reported net income of $7.5 billion, driven largely by the company's December bond exchange, compared to a net loss of $724 million in the fourth quarter of 2007. Excluding the $11.4 billion gain on its bond exchange, GMAC's results in the fourth quarter reflected a net loss of $4.0 billion, driven primarily by losses in North America automotive finance and continued losses at Residential Capital, LLC (ResCap). GMAC reported net income of $1.9 billion in 2008, compared with a net loss of $2.3 billion in 2007.

GM realized an adjusted loss of $4.7 billion attributable to GMAC, as a result of its 49 percent equity interest for the year, and an adjusted loss of $1.9 billion for the fourth quarter. This excludes a fourth quarter net gain of $533 million related to GM's portion of GMAC's bond exchange gain that was largely offset by an impairment of GM's investment in GMAC.

Cash and Liquidity

Cash, marketable securities and readily available assets of the Voluntary Employees Beneficiary Association (VEBA) trust totaled $14.0 billion as of Dec. 31, 2008, down from $27.3 billion on Dec. 31, 2007. GM had adjusted automotive operating cash flow of negative $5.2 billion in the fourth quarter, and ended the 2008 calendar year with adjusted automotive operating cash flow of negative $19.2 billion, largely due to lower volume across GM's global operations and negative working capital.

On Dec. 31, 2008, GM entered into a loan agreement with the U.S. Department of Treasury (UST) for funding of $13.4 billion, payable in three tranches. The initial installment of $4.0 billion was provided to GM on Dec. 31, 2008, followed by subsequent installments of $5.4 billion and $4.0 billion on Jan. 21, 2009 and Feb. 17, 2009, respectively.

In accordance with the terms of the loan, GM submitted to the UST on Feb. 17, 2009 a comprehensive global restructuring plan that demonstrates GM's long-term viability. GM is working with its key stakeholders as the company implements the actions outlined in the plan, to create a revitalized, more cost competitive company, dedicated to developing world-class vehicles and leading advanced propulsion technologies.

As a result of year-end measurements of GM's net pension obligations, it was determined that the U.S. hourly and salaried qualified pension plans are currently underfunded, on a combined basis, by approximately $12.4 billion. Several factors contributed to the underfunded status, including service and interest costs; lower asset returns; lower discount rates; changes in actuarial assumptions; various hourly initiatives including the UAW special attrition program, VEBA agreement, Delphi pension transfer and IUE contract; and salaried initiatives including the pension benefit changes relating to the elimination of post-65 retiree healthcare and the salaried retirement program. While no additional pension contributions are anticipated over the next three years, the funded status of the pension plan is subject to a number of variables. GM will continue to analyze its pension funding strategies going forward.

GM intends to take advantage of the extension of the time required to file its 2008 10-K, which the SEC rules allow by filing Form 12b-25. This provides GM with up to 15 additional days in which to file its 2008 10-K, without being considered "late" by the SEC. The company believes this is a prudent step to take at this critical time as it allows more time for thorough review of the extensive financial and other disclosures regarding the events that occurred at year-end 2008 and during early 2009. Additionally, as a result of the bond exchange, GM's 2008 10-K will contain information regarding executive compensation, which would not normally be disclosed until the proxy statement is issued for GM's annual stockholder meeting.

Finally, GM anticipates receiving a "going concern" opinion from its auditors in the 2008 10-K. GM and its auditors must determine whether there is substantial doubt about GM's ability to continue as a going concern. GM's Viability Plan filed with the UST on Feb. 17, 2009, included a request for additional funding from the UST, as well as support from other governments outside of the U.S. GM requires this funding in 2009 to continue operations until global automotive sales recover and its restructuring actions generate benefits, resulting in the company being able to fund its own operating requirements.

About GM

General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the U.S., followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Forward-Looking Statements

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "ensure," "promote," "target," "believe," "improve," "intend," "enable," "continue," "will," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreement with the U.S. Treasury; the availability of funding for future loans under that credit agreement; our ability to execute the restructuring plans that we have disclosed, our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; and changes in general economic conditions, market acceptance of our products; shortages of and price volatility for fuel; significant changes in the competitive environment and the effect of competition on our markets, including on our pricing policies, financing sources and an appropriate level of debt; and changes in general economic conditions.

General Motors Corporation

Use of Non-GAAP Financial Measures

This press release, the accompanying tables and the charts for securities analysts include the following financial measures, which are not prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP): (1) adjusted net income; (2) adjusted earnings before tax; (3) managerial cash flow; and (4) GM North America vehicle revenue per unit. Each of these financial measures is therefore considered a non-GAAP financial measure. This press release and the charts for securities analysts also contain a reconciliation of each non-GAAP financial measure to its most comparable GAAP financial measure. Certain prior period amounts have been reclassified in the consolidated statements of operations and related summaries to conform to the current period presentation.

Management believes these non-GAAP financial measures provide meaningful supplemental information regarding GM's operating results because they exclude amounts that GM management does not consider part of operating results when assessing and measuring the operational and financial performance of the organization. In addition, GM has historically reported similar non-GAAP financial measures and believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past earnings releases. GM management believes these measures allow it to readily view operating trends, perform analytical comparisons, benchmark performance among geographic regions and assess whether the GM North American structural cost turnaround plan is on target. Also, GM management uses adjusted net income and adjusted earnings before tax for forecasting purposes and in determining future capital investment allocations. Accordingly, GM believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.

While GM believes that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be comparable to similarly titled measures of other companies due to potential differences in the method of calculation between companies. Costs such as the special attrition programs and restructuring charges that are excluded from GM's non-GAAP financial measures can have a material effect on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations, or other measures of performance or liquidity prepared in accordance with GAAP. GM compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.

Adjusted Net Income and Adjusted Earnings Before Tax

Adjusted net income excludes charges for certain tax related items, gains and losses on the sale of business units and business interests, charges associated with accounting changes, restructuring, plant closure and impairment charges, charges associated with Delphi Corporation (Delphi), special attrition program charges, and other gains and losses which management excludes when assessing the internal performance of the organization.

Adjusted earnings before tax begins with adjusted net income and is adjusted to remove any remaining tax expense or benefit.

General Motors Corporation

Use of Non-GAAP Financial Measures (Continued)

Managerial Cash Flow

GM reports non-GAAP managerial automotive operating cash flow in its earnings releases and charts for securities analysts. Management believes that providing managerial automotive operating cash flow furnishes it and investors with useful information by representing the cash flow generated or consumed by its automotive operations, including cash consumed by automotive capital expenditures and equity investments in companies related to GM's core business and cash generated by sales of automotive operating assets and equity investments in companies related to GM's core business, before funding non-operating-related obligations including debt maturities, dividends and other non-operating items. Management uses this non-GAAP financial measure to assess its automotive cash flow when evaluating the performance of GM, its business units and its management teams and when making decisions to allocate resources among GM's business units.

General Motors Corporation

List of Special Items

2008

(Dollars in millions except per share amounts)

(Unaudited)

Fourth Quarter 2008 Year Ended 2008 ------------------- --------------- Earnings EPS Earnings EPS REPORTED -------- Net Loss - Basic and Diluted * $(9,596) $(15.71) $(30,860) $(53.32) ADJUSTMENTS ----------- Pre-Tax Adjustments: Goodwill impairments (A) $610 $610 Asset impairments (B) 974 974 Charges (income) related to investment in GMAC LLC (C) (533) 2,504 Delphi (D) 660 4,797 Restructuring and 2008 Special Attrition Programs (E) 900 6,463 UAW VEBA curtailment gain (F) - (4,901) Salaried post-65 healthcare settlement (G) - 1,704 Canadian Auto Workers labor contract (H) - 340 American Axle (I) - 197 Gain on sales of investments (J) - (98) - ---- 2,611 12,590 ----- ------ Tax related: Valuation allowance on net deferred tax assets (K) 1,056 1,450 Equity Income/Minority Interest: Equity investment impairments (L) 83 83 Minority interest effects (M) (49) (49) ---- ---- 34 34 -- -- Total Adjustments $3,701 $6.06 $14,074 $24.32 ====== ===== ======= ====== ADJUSTED -------- Adjusted Loss - Basic and Diluted * $(5,895) $(9.65) $(16,786) $(29.00) =========== =========== ========= ===========

* See average shares outstanding on page 16.

General Motors Corporation

List of Special Items

2008

(Unaudited)

(A) Fourth quarter and year to date charges of $610 million were recorded for goodwill impairments as follows: $154 million related to GMNA and $456 million related to GME.

(B) Fourth quarter charges of $974 million were recorded for asset impairments as follows: GMNA, $412 million; GME, $497 million; LAAM, $27 million; and GMAP, $38 million.

(C ) Fourth quarter income of $5.6 billion representing our proportionate share of GMAC's bond extinguishment gain recorded related to its debt tender offer partially offset by impairment charges of $5.1 billion related to our investment in GMAC Common Membership Interests. Year to date impairment charges of $8.1 billion related to GM's investment in GMAC's Common and Preferred Membership Interests partially offset by the $5.6 billion bond extinguishment gain.

(D) Fourth quarter charges of $660 million and year to date charges of $4.8 billion were recorded for increased liabilities under the Delphi-GM Settlement Agreements, primarily due to expectations of increased obligations and lower estimates of the expected amount of recoveries associated with the Delphi Benefit Guarantee Agreements.

(E) Relates to various restructuring initiatives and the 2008 Special Attrition Programs. Charges recorded by region are as follows:

GMNA: Fourth quarter charges of $757 million and year to date charges of $6.0 billion were recorded in GMNA for additional wage and benefit costs related to announced capacity actions, plant idlings in the U.S. and Canada, Salaried Window Program and IUE-CWA pension related items. Year to date charges of $3.5 billion were recorded for pre-retirement and retirement pension and benefit incentives and cash buyouts for employees leaving under the 2008 Special Attrition Programs.

GME: Fourth quarter charges of $33 million and year to date charges of $264 million were recorded for separation programs, primarily in Belgium, France, Germany and the United Kingdom.

GMAP: Year to date charges of $98 million were recorded for separation programs at GM Holden, Ltd.

Corporate and Other: Fourth quarter and year to date charges of $110 million were recorded for additional wage and benefit costs related to the Salaried Window Program and IUE-CWA pension related items.

(F) Year to date gain of $4.9 billion for the accelerated recognition of unamortized net prior service credits due to the Settlement Agreement for the UAW hourly medical plan becoming effective in 2008.

(G) Settlement loss of $1.7 billion associated with the elimination of healthcare coverage for U.S. salaried retirees over age 65 beginning January 1, 2009. The settlement loss was recorded for participants over age 65 at January 1, 2009 and considers the cost of the increased pension benefit provided to those affected participants to help offset the cost of Medicare and supplemental coverage.

(H) Year to date loss of $340 million due to a change in the estimate of the amortization period for pension prior service costs related to the hourly defined benefit pension plan in Canada. In conjunction with the 2008 Canadian Auto Workers (CAW) labor agreement, it was determined that the three year contractual life of the labor agreement is a better reflection of the period of future economic benefit for the collectively bargained hourly pension plans.

(I) Year to date charge of $197 million due to GM's agreement to provide upfront support to American Axle to end the work stoppage that affected approximately 30 GM plants in North America. GM's support partially funds American Axle's costs associated with UAW employee buyouts, early retirements and buydowns.

(J) First quarter gain of $50 million on the sale of GM's common equity interest in Electro-Motive Diesel, Inc. and a third quarter gain of $48 million on the sale of GM's Oklahoma City facility.

(K) Fourth quarter and year to date charges of $1.1 billion and $1.5 billion, respectively, for valuation allowances on GM's net deferred tax assets. Year to date charge primarily related to GMDAT ($283 million), Spain ($261 million), Australia ($178 million), and the United Kingdom ($133 million).

(L) Fourth quarter and year to date charges of $83 million primarily related to impairments on GM's equity investments in New United Motor Manufacturing, Inc. and CAMI Automotive Inc.

(M) Fourth quarter and year to date gain of $49 million resulting from the minority interest holder's portion of pre-tax adjustments and valuation allowances.

General Motors Corporation

List of Special Items

2007

(Dollars in millions except per share amounts)

(Unaudited)

Fourth Quarter 2007 Year Ended 2007 ------------------- --------------- Earnings EPS Earnings EPS REPORTED -------- Loss from continuing operations $(1,527) $(2.70) $(43,297) $(76.52) Income from discontinued operations - - 256 0.45 Gain on sale of discontinued operations 805 1.42 4,309 7.62 --- ---- ----- ---- Net Loss - Basic and Diluted* $(722) $(1.28) $(38,732) $(68.45) ========== ========== ========== ======== ADJUSTMENTS ----------- Pre-Tax Adjustments: Delphi (A) $1,174 $2,099 Restructuring/Special attrition program (B) 290 918 Product specific asset impairments (C) 169 277 Plant closures (D) (43) (90) Pension prior service cost (E) - 1,561 ----- ----- 1,590 4,765 ----- ----- Tax Related Adjustments: Valuation allowance on deferred tax assets and associated tax items (F) - 38,300 Income tax effect of pre-tax adjustments (17) (47) ---- ---- (17) 38,253 ---- ------ Total Continuing Operations Adjustments 1,573 2.78 43,018 76.03 Gain on sale of discontinued operations (G) (805) (1.42) (4,309) (7.62) ----- ------ ------- ------ Total Adjustments $768 $1.36 $38,709 $68.41 ==== ===== ======= ====== ADJUSTED -------- Income from continuing operations $46 $0.08 $(279) $(0.49) Income from discontinued operations - - 256 0.45 ---- ---- --- ---- Adjusted Income - Basic and Diluted* $46 $0.08 $(23) $(0.04) ========= ========== ========= =========

* See average shares outstanding on page 16.

General Motors Corporation

List of Special Items

2007

(Unaudited)

(A) GM, Delphi and the UAW entered into a Memorandum of Understanding (MOU) in June 2007. GM recorded fourth quarter charges of $1.2 billion and year to date charges of $2.1 billion to increase GM's estimated liability under the Delphi Benefit Guarantee Agreements and to establish liabilities for certain commitments in connection with the Delphi reorganization plan outlined in the MOU.

(B) Relates to various restructuring initiatives and the 2006 Special Attrition Program. Charges recorded by region are as follows:

GMNA: Fourth quarter charges of $61 million and year to date charges of $278 million were recorded for plant closing reserve adjustments. Additionally, favorable curtailment adjustments of $1 million were recorded during the quarter and reserve adjustments of $11 million for the year were recorded under the Special Attrition Program.

GME: Fourth quarter charges of $230 million and year to date charges of $579 million were recorded for separation programs primarily in Belgium, Germany and Sweden.

GMAP: Year to date charges of $50 million were recognized relating to separation programs at Australian facilities.

(C ) Fourth quarter charges of $169 million and year to date charges of $277 million related to product specific asset impairments are as follows:

GMNA: Fourth quarter and year to date charges of $169 million and $264 million recorded.

GMAP: Year to date charges of $13 million recorded.

(D) Relates to curtailment gains and favorable reserve adjustments at GMNA related to the closure of two former component plants.

(E) Relates to a change in the estimate of the amortization period for pension prior service cost for certain of our employee benefit plans. In conjunction with entering into the 2007 UAW/GM labor contract, GM determined that the four year term of the labor contract better reflects the period of future economic benefit received from plan amendments to U.S. hourly pension plans. Concurrently, GM evaluated the remaining economic benefit related to the unamortized prior service cost remaining from prior labor contracts and determined the future economic benefit for those amounts that remained at the end of the third quarter of 2007 did not extend beyond the third quarter. Accordingly, during the third quarter 2007, GM recorded a charge of $1.3 billion in GMNA and $0.3 billion in Corporate and Other to expense the remaining portion of unamortized prior service cost from the plan amendments entered into as part of the 1999 and 2003 labor contracts.

(F) Relates to a net charge during the third quarter of 2007 for a valuation allowance on certain deferred tax assets and associated tax items in the U.S., Canada and Germany. The net charge includes the valuation allowance of $39 billion, which is offset by an adjustment of $0.7 billion relating to tax benefits recorded at loss entities through the third quarter of 2007. Additionally, the allowance includes a $0.5 billion charge associated with a reduction in the value of deferred tax assets due to a reduction in the statutory corporate income tax and trade tax rates in Germany.

(G) Relates to the gain on the sale of the commercial and military operations of our Allison Transmission business, which was completed in August 2007 and recorded as discontinued operations. The $805 million net gain during the fourth quarter includes a $830 million re-allocation of GM's total year-to-date income tax expense between continuing operations, discontinued operations and other comprehensive income, as required under U.S. GAAP (SFAS 109). Additionally, $25 million in post-closing adjustments were determined and recorded during the fourth quarter.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions except per share amounts)

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- REPORTED -------- Total net sales and revenue $30,778 $46,804 $148,979 $179,984 Income (loss) from continuing operations $(9,596) $(1,527) $(30,860) $(43,297) Income from discontinued operations $- $- $- $256 Net income (loss) $(9,596) $(722) $(30,860) $(38,732) Net margin from continuing operations * (31.2)% (3.3)% (20.7)% (24.1)% Earnings (loss) per share - basic and diluted Continuing operations $(15.71) $(2.70) $(53.32) $(76.52) Income from discontinued operations - 1.42 - 8.07 - ---- - ---- Net income (loss) $(15.71) $(1.28) $(53.32) $(68.45) ======== ======= ======== ======== ADJUSTED -------- Total net sales and revenue $30,778 $46,804 $148,979 $179,984 Income (loss) from continuing operations $(5,895) $46 $(16,786) $(279) Income from discontinued operations $- $- $- $256 Net income (loss) $(5,895) $46 $(16,786) $(23) Net margin from continuing operations * (19.2)% 0.1% (11.3)% (0.2)% Earnings (loss) per share - basic and diluted Income (loss) from continuing operations $(9.65) $0.08 $(29.00) $(0.49) Income from discontinued operations - - - 0.45 - - - ---- Net income (loss) $(9.65) $0.08 $(29.00) $(0.04) ======= ===== ======== =======

See reconciliation of adjusted financial results on pages 17 - 23.

* Calculated as Income (loss) from continuing operations / Total net sales and revenue.

General Motors Corporation

Summary Corporate Financial Results

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- GM common stock average shares outstanding: (Millions) ---------- Reported (GAAP): Basic shares 611 566 579 566 Diluted shares 611 566 579 566 Adjusted (Non-GAAP): Basic shares 611 566 579 566 Diluted shares 611 567 579 566 Cash dividends per share of common stock $- $0.25 $0.50 $1.00 Automotive cash & marketable securities and readily-available assets in VEBA at December 31: (Billions) ---------- Automotive cash & marketable securities $14.0 $26.7 Readily-available assets in VEBA - 0.6 ---- --- Total automotive cash & marketable securities and readily-available assets in VEBA $14.0 $27.3 ========= ========= Automotive Operations: (Millions) ---------- Depreciation and impairment $2,109 $1,212 $5,689 $4,937 Amortization and impairment of special tools 1,145 916 3,493 3,243 Amortization and impairment of intangible assets 632 23 693 74 --- -- --- -- Total $3,886 $2,151 $9,875 $8,254 ====== ====== ====== ======

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Fourth Quarter

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Net sales and revenue: GMNA $19,280 $28,121 $- $- $19,280 $28,121 GME 6,418 10,710 - - 6,418 10,710 GMLAAM 4,707 6,040 - - 4,707 6,040 GMAP 2,608 5,342 - - 2,608 5,342 Auto Elimination (a) (2,401) (3,695) - - (2,401) (3,695) ------- ------- - - ------- ------- Total GMA 30,612 46,518 - - 30,612 46,518 Corporate & Other - - - - - - - - - - ---- ---- Total Auto & Other 30,612 46,518 - - 30,612 46,518 ------ ------ - - ------ ------ GMAC - - - - - - Other Financing 166 286 - - 166 286 --- --- - - --- --- Total Financing 166 286 - - 166 286 --- --- - - --- --- Total $30,778 $46,804 $- $- $30,778 $46,804 ======= ======= ==== ==== ======= ======= Income (loss) from continuing operations before income taxes, other equity income and minority interests: GMNA $(3,390) $(1,221) $1,323 $192 $(2,067)$(1,029) GME (1,938) (449) 986 230 (952) (219) GMLAAM (171) 424 27 - (144) 424 GMAP (921) 13 38 - (883) 13 Auto Elimination (a) 103 (24) - - 103 (24) --- ---- ---- ---- --- ---- Total GMA (6,317) (1,257) 2,374 422 (3,943) (835) Corporate & Other (a) (1,086) (1,652) 770 1,168 (316) (484) ------- ------- --- ----- ----- ----- Total Auto & Other (7,403) (2,909) 3,144 1,590 (4,259) (1,319) ------- ------- ----- ----- ------- ------- GMAC (1,406) (394) (533) - (1,939) (394) Other Financing (a) 18 94 - - 18 94 -- -- ---- ---- -- -- Total Financing (1,388) (300) (533) - (1,921) (300) ------- ----- ----- ---- - ------ ----- Total $(8,791) $(3,209) $2,611 $1,590 $(6,180)$(1,619) ======== ======== ====== ====== ======= ========

See footnotes on page 26.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Fourth Quarter

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Equity income (loss), net of tax: GMNA (153) $(28) $119 $- $(34) $(28) GME 9 14 - - 9 14 GMLAAM (1) 8 - - (1) 8 GMAP 20 90 - - 20 90 Auto Elimination - - - - - - - - - - - - Total GMA (125) 84 119 - (6) 84 Corporate & Other 1 - - - 1 - - - - - - - Total Auto & Other (124) 84 119 - (5) 84 --- -- --- - --- -- GMAC - - - - - - Other Financing - - - - - - - - - - - - Total Financing - - - - - - - - - - - - Total (124) $84 $119 $- $(5) $84 === === ==== ======= ==== === Minority interests, net of tax: GMNA $20 $(3) $(20) $- $- $(3) GME 39 (10) (52) - (13) (10) GMLAAM (9) (8) - - (9) (8) GMAP (16) (31) - - (16) (31) Auto Elimination - - - - - - - - - - - - Total GMA 34 (52) (72) - (38) (52) Corporate & Other 1 11 - - 1 11 - -- - - - -- Total Auto & Other 35 (41) (72) - (37) (41) -- ---- ---- - ---- ---- GMAC - - - - - - Other Financing 21 (4) (13) - 8 (4) -- --- ---- - - --- Total Financing 21 (4) (13) - 8 (4) -- --- ---- - - --- Total $56 $(45) $(85) $- $(29) $(45) === ----- ===== ======= ===== -----

See footnotes on page 26.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Fourth Quarter

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Pre-tax earnings (loss):* GMNA $(3,523) $(1,252) $1,422 $192 $(2,101) $(1,060) GME (1,890) (445) 934 230 (956) (215) GMLAAM (181) 424 27 - (154) 424 GMAP (917) 72 38 - (879) 72 Auto Elimination (a) 103 (24) - - 103 (24) --- ---- - - --- ---- Total GMA (6,408) (1,225) 2,421 422 (3,987) (803) Corporate & Other (a) (1,084) (1,641) 770 1,168 (314) (473) ------- ------- --- ----- ----- ----- Total Auto & Other (7,492) (2,866) 3,191 1,590 (4,301) (1,276) ------- ------- ----- ----- ------- ------- GMAC (1,406) (394) (533) - (1,939) (394) Other Financing (a) 39 90 (13) - 26 90 -- -- ---- - -- -- Total Financing (1,367) (304) (546) - (1,913) (304) ------- ----- ----- - ------- ----- Total $(8,859) $(3,170) $2,645 $1,590 $(6,214) $(1,580) ======= ------- ====== ====== ======== -------- Income tax (expense) benefit: Corporate & Other $(700) $1,553 $1,037 $(17) $337 $1,536 Other Financing (a) (37) 90 19 - (18) 90 ---- -- -- - ---- -- Total $(737) $1,643 $1,056 $(17) $319 $1,626 ====== ====== ====== ===== ==== ======

See footnotes on page 26.

* Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Year to Date

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Net sales and revenue: GMNA $86,187 $112,448 $- $- $86,187 $112,448 GME 34,388 37,478 - - 34,388 37,478 GMLAAM 20,260 18,894 - - 20,260 18,894 GMAP 17,828 20,317 - - 17,828 20,317 Auto Elimination (a) (10,931) (11,543) - - (10,931) (11,543) -------- -------- - - -------- -------- Total GMA 147,732 177,594 - - 147,732 177,594 Corporate & Other - - - - - - - - - - - - Total Auto & Other 147,732 177,594 - - 147,732 177,594 ------- ------- - - ------- ------- GMAC - - - - - - Other Financing 1,247 2,390 - - 1,247 2,390 ----- ----- - - ----- ----- Total Financing 1,247 2,390 - - 1,247 2,390 ----- ----- - - ----- ----- Total $148,979 $179,984 $- $- $148,979 $179,984 ======== ======== ==== ==== ======== ======== Income (loss) from continuing operations before income taxes, other equity income and minority interests: GMNA $(13,903) $(3,290) $4,535 $1,779 $(9,368) $(1,511) GME (2,876) (541) 1,217 579 (1,659) 38 GMLAAM 1,306 1,349 27 - 1,333 1,349 GMAP (1,193) 557 136 63 (1,057) 620 Auto Elimination (a) 34 (59) - - 34 (59) -- ---- - - -- ---- Total GMA (16,632) (1,984) 5,915 2,421 (10,717) 437 Corporate & Other (a) (5,745) (3,619) 4,171 2,344 (1,574) (1,275) ------- ------- ----- ----- ------- ------- Total Auto & Other (22,377) (5,603) 10,086 4,765 (12,291) (838) -------- ------- ------ ----- -------- ----- GMAC (7,161) (1,147) 2,504 - (4,657) (1,147) Other Financing (a) 150 497 - - 150 497 --- --- - - --- --- Total Financing (7,011) (650) 2,504 - (4,507) (650) ------- ----- ----- ---- ------- ----- Total $(29,388) $(6,253)$12,590 $4,765 $(16,798) $(1,488) ========= -------- ======= ====== ========= --------

See footnotes on page 26.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Year to Date

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Equity income (loss), net of tax: GMNA $(201) $22 $119 $- $(82) $22 GME 56 44 - - 56 44 GMLAAM 21 31 - - 21 31 GMAP 308 425 - - 308 425 Auto Elimination - - - - - - - - - - - - Total GMA 184 522 119 - 303 522 Corporate & Other 2 2 - - 2 2 - - - - - - Total Auto & Other 186 524 119 - 305 524 --- --- --- - --- --- GMAC - - - - - - Other Financing - - - - - - - - - - - - Total Financing - - - - - - - - - - - - Total $186 $524 $119 $- $305 $524 ==== ==== ==== ======= ==== ==== Minority interests, net of tax: GMNA $28 $(46) $(20) $- $8 $(46) GME 22 (27) (52) - (30) (27) GMLAAM (32) (32) - - (32) (32) GMAP 85 (301) - - 85 (301) Auto Elimination - - - - - - - - - - - - Total GMA 103 (406) (72) - 31 (406) Corporate & Other 1 12 - - 1 12 - -- - - - -- Total Auto & Other 104 (394) (72) - 32 (394) --- ----- ---- - -- ----- GMAC - - - - - - Other Financing 4 (12) (13) - (9) (12) - ---- ---- - --- ---- Total Financing 4 (12) (13) - (9) (12) - ---- ---- - --- ---- Total $108 $(406) $(85) $- $23 $(406) ==== ------ ===== ======= === ------

See footnotes on page 26.

General Motors Corporation

Summary Corporate Financial Results

(Dollars in millions)

(Unaudited)

Year to Date

2008 and 2007

Reported Special Items Adjusted -------- ------------- -------- 2008 2007 2008 2007 2008 2007 ---- ---- ---- ---- ---- ---- Pre-tax earnings (loss): * GMNA $(14,076) $(3,314) $4,634 $1,779 $(9,442) $(1,535) GME (2,798) (524) 1,165 579 (1,633) 55 GMLAAM 1,295 1,348 27 - 1,322 1,348 GMAP (800) 681 136 63 (664) 744 Auto Elimination (a) 34 (59) - - 34 (59) -- ---- - - -- ---- Total GMA (16,345) (1,868) 5,962 2,421 (10,383) 553 Corporate & Other (a) (5,742) (3,605) 4,171 2,344 (1,571) (1,261) ------- ------- ----- ----- ------- ------- Total Auto & Other (22,087) (5,473) 10,133 4,765 (11,954) (708) -------- ------- ------ ----- -------- ----- GMAC (7,161) (1,147) 2,504 - (4,657) (1,147) Other Financing (a) 154 485 (13) - 141 485 --- --- ---- - --- --- Total Financing (7,007) (662) 2,491 - (4,516) (662) ------- ----- ----- - ------- ----- Total $(29,094) $(6,135) $12,624 $4,765 $(16,470) $(1,370) ======== -------- ------- ====== ========= ------- Income tax (expense) benefit: Corporate & Other $(2,458)$(37,129) $1,431 $38,130 $(1,027) $1,001 Other Financing (a) 692 (33) 19 123 711 90 --- ---- -- --- --- -- Total $(1,766)$(37,162) $1,450 $38,253 $(316) $1,091 ======= ======== ====== ======= ====== ======

See footnotes on page 26.

* Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests.

23

General Motors Corporation

Summary Corporate Financial Results

(Dollars in billions)

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Automotive & Other Adjusted Operating Cash Flow: Total Auto & Other pre-tax earnings (loss)* $(7.5) $(2.9) $(22.1) $(5.5) Depreciation, amortization and impairments 3.9 2.2 9.9 8.3 Capital expenditures (2.0) (2.6) (7.5) (7.5) Change in receivables, payables and inventory 0.6 0.4 (3.5) (0.5) OPEB expense (net of payments) (1.1) (0.3) (5.9) (1.4) Pension expense (net of payments) 0.8 - 3.8 0.9 VEBA - - - (1.0) Accrued expenses and other 0.1 1.9 6.1 4.3 --- --- --- --- Total Auto & Other Adjusted Operating Cash Flow $(5.2) $(1.3) $(19.2) $(2.4) =========== =========== =========== =========== * Defined here as Income (loss) from continuing operations before income taxes and after equity income and minority interests. Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- GAAP to Auto & Other Adjusted Operating Cash Flow: Net cash provided by operating activities (GAAP)** $(2.8) $3.4 $(13.3) $5.4 Capital expenditures (2.0) (2.6) (7.5) (7.5) VEBA withdrawals (0.8) (2.7) (1.4) (2.7) Restructuring costs 0.2 0.4 1.2 1.4 Delphi restructuring costs 0.2 - 1.4 0.3 Other - 0.2 0.4 0.7 - --- --- --- Total Auto & Other Adjusted Operating Cash Flow $(5.2) $(1.3) $(19.2) $(2.4) =========== =========== =========== ===========

** Operating cash flow from continuing operations.

General Motors Corporation

Operating Statistics

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Worldwide Production Volume: (Units in thousands) -------------------- GMNA - Cars 365 358 1,543 1,526 GMNA - Trucks 450 684 1,906 2,741 --- --- ----- ----- Total GMNA 815 1,042 3,449 4,267 GME 214 457 1,550 1,828 GMLAAM 166 253 961 960 GMAP * 453 627 2,184 2,231 --- --- ----- ----- Total Worldwide ** 1,648 2,380 8,144 9,286 ===== ===== ===== ===== Vehicle Unit Deliveries: Chevrolet - Cars 132 162 715 757 Chevrolet - Trucks 209 355 1,086 1,509 Pontiac 42 81 267 358 GMC 71 125 377 506 Buick 24 42 137 186 Saturn 29 52 188 240 Cadillac 32 60 161 215 Other 9 20 49 96 - -- -- -- Total United States 547 897 2,981 3,867 Canada, Mexico and Other 127 157 583 649 --- --- --- --- Total GMNA 675 1,054 3,564 4,516 GME 420 529 2,041 2,182 GMLAAM 266 341 1,276 1,236 GMAP * 341 382 1,475 1,436 --- --- ----- ----- Total Worldwide ** 1,703 2,306 8,356 9,370 ===== ===== ===== =====

*Under a contractual agreement with SGMW we also report Wuling China vehicle sales as part of our global market share. Wuling China vehicle fourth quarter sales included in our global vehicle sales and market share data was Worldwide Production Volume of 152,000 vehicles and 163,000 vehicles and Vehicle Unit Deliveries of 149,020 vehicles and 132,047 vehicles in 2008 and 2007, respectively. Year to date Wuling China sales included in our global vehicle sales and market share data was Worldwide Production Volume of 646,000 vehicles and 555,000 vehicles and Vehicle Unit Deliveries of 606,000 vehicles and 516,000 vehicles in 2008 and 2007, respectively. Consistent with industry practice, vehicle sales information includes estimates of industry sales in certain countries where public reporting is not legally required or otherwise available on a consistent basis.

**Totals may include rounding differences.

General Motors Corporation

Operating Statistics

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- Market Share: (Units in thousands) -------------------- United States - Cars 18.2% 19.0% 18.6% 19.7% United States - Trucks 24.6% 26.6% 25.6% 26.7% Total United States 21.6% 23.2% 22.1% 23.5% Total GMNA 21.0% 22.7% 21.5% 23.1% Total GME 9.1% 9.2% 9.3% 9.4% Total GMLAAM 16.2% 17.3% 17.1% 17.0% Total GMAP * 7.2% 7.3% 7.0% 6.9% Total Worldwide 12.0% 13.1% 12.4% 13.3% U.S. Retail/Fleet Mix (selling day adjusted): % Fleet Sales - Cars 45.6% 31.2% 34.8% 34.9% % Fleet Sales - Trucks 23.2% 19.6% 22.4% 20.5% Total Vehicles 32.2% 23.9% 27.6% 26.1% GMNA Capacity Utilization *** 72.1% 86.2% 74.7% 88.5%

***Two shift rated, annualized.

General Motors Corporation

Operating Statistics

(Unaudited)

Fourth Quarter Year to Date -------------- ------------ 2008 2007 2008 2007 ---- ---- ---- ---- GMAC's share of GM retail sales (U.S. only) Total consumer volume (retail and lease) as % of retail 5% 43% 33% 45% SmartLease/SmartBuy as % of retail 0% 13% 11% 17% Worldwide Employment (Thousands) at December 31: ----------- United States - Hourly 62 78 United States - Salaried 29 32 -- -- Total United States 91 110 Canada, Mexico and Other 25 29 -- -- GMNA 116 139 GME 55 57 GMLAAM 35 34 GMAP 35 34 Other 2 2 - - Total GM 243 266 === === (Billions) ---------- Worldwide Payroll $3.8 $4.6 $16.8 $18.0

Footnotes:

(a) Auto Eliminations, Corporate & Other and Other Financing include inter-company eliminations.

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions, except per share amounts)

(Unaudited)

Three Months Ended December 31, ------------------------------- 2008 2007 ---- ---- Net sales and revenue Automotive sales $30,612 $46,518 Financial services and insurance revenue 166 286 --- --- Total net sales and revenue 30,778 46,804 ------ ------ Costs and expenses Automotive cost of sales 33,092 43,805 Selling, general and administrative expense 3,549 4,207 Financial services and insurance expense 202 301 Other expenses 1,271 1,174 ----- ----- Total costs and expenses 38,114 49,487 ------ ------ Operating loss (7,336) (2,683) Equity in loss of GMAC LLC (Note 9) (1,406) (371) Automotive and other interest expense (308) (664) Automotive interest income and other non-operating income, net 259 509 --- --- Loss from continuing operations before income taxes, equity income and minority interests (8,791) (3,209) Income tax expense (benefit) 737 (1,643) Equity income (loss), net of tax (124) 84 Minority interests, net of tax 56 (45) -- ---- Loss from continuing operations (9,596) (1,527) Discontinued operations (Note 4) Income from discontinued operations, net of tax - - Gain on sale of discontinued operations, net of tax - 805 - --- Income from discontinued operations - 805 - --- Net loss $(9,596) $(722) ======== ====== Earnings (loss) per share, basic and diluted Continuing operations $(15.71) $(2.70) Discontinued operations - 1.42 - ---- Net loss per share basic and diluted $(15.71) $(1.28) ======== ======= Weighted-average common shares outstanding, basic and diluted (millions) 611 566 === === Cash dividends per share $- $0.25 ========== =====

28

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions, except per share amounts)

(Unaudited)

Years Ended December 31, ------------------------ 2008 2007 2006 ---- ---- ---- Net sales and revenue Automotive sales $147,732 $177,594 $170,651 Financial services and insurance revenue 1,247 2,390 33,816 ----- ----- ------ Total net sales and revenue 148,979 179,984 204,467 ------- ------- ------- Costs and expenses Automotive cost of sales 149,311 165,573 163,214 Selling, general and administrative expense 14,253 14,412 13,650 Financial services and insurance expense 1,292 2,209 29,188 Other expenses 5,407 2,099 4,238 ----- ----- ----- Total costs and expenses 170,263 184,293 210,290 ------- ------- ------- Operating loss (21,284) (4,309) (5,823) Equity in loss of GMAC LLC (Note 9) (6,183) (1,245) (5) Automotive and other interest expense (2,345) (2,983) (2,642) Automotive interest income and other non-operating income, net 424 2,284 2,812 --- ----- ----- Loss from continuing operations before income taxes, equity income and minority interests (29,388) (6,253) (5,658) Income tax expense (benefit) 1,766 37,162 (3,046) Equity income, net of tax 186 524 513 Minority interests, net of tax 108 (406) (324) --- ----- ----- Loss from continuing operations (30,860) (43,297) (2,423) Discontinued operations (Note 4) Income from discontinued operations, net of tax - 256 445 Gain on sale of discontinued operations, net of tax - 4,309 - - ----- - Income from discontinued operations - 4,565 445 - ----- --- Net loss $(30,860) $(38,732) $(1,978) ========= ========= ======== Earnings (loss) per share, basic and diluted Continuing operations $(53.32) $(76.52) $(4.29) Discontinued operations - 8.07 0.79 - ---- ---- Net loss per share basic and diluted $(53.32) $(68.45) $(3.50) ======== ======== ======= Weighted-average common shares outstanding, basic and diluted (millions) 579 566 566 === === === Cash dividends per share $0.50 $1.00 $1.00 ===== ===== =====

29

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

December 31, ------------ 2008 2007 ---- ---- ASSETS Current Assets Cash and cash equivalents $13,953 $24,549 Marketable securities 13 2,139 -- ----- Total cash and marketable securities 13,966 26,688 Accounts and notes receivable, net 7,711 9,659 Inventories 13,042 14,939 Equipment on operating leases, net 3,363 5,283 Other current assets and deferred income taxes 3,142 3,566 ----- ----- Total current assets 41,224 60,135 Financing and Insurance Operations Assets Cash and cash equivalents 100 268 Investments in securities 128 215 Equipment on operating leases, net 2,221 6,712 Equity in net assets of GMAC LLC 491 7,079 Other assets 1,567 2,715 ----- ----- Total Financing and Insurance Operations assets 4,507 16,989 Non-Current Assets Equity in net assets of nonconsolidated affiliates 1,655 1,919 Property, net 39,656 43,017 Goodwill and intangible assets, net 265 1,066 Deferred income taxes 98 2,116 Prepaid pension 109 20,175 Other assets 3,533 3,466 ----- ----- Total non-current assets 45,316 71,759 ------ ------ Total assets $91,047 $148,883 ======= ======== Current Liabilities Accounts payable (principally trade) $22,236 $29,439 Short-term borrowings and current portion of long- 15,754 6,047 Accrued expenses 35,921 34,024 ------ ------ Total current liabilities 73,911 69,510 Financing and Insurance Operations Liabilities 23 30 Accounts payable Debt 1,192 4,908 Other liabilities and deferred income taxes 607 875 --- --- Total Financing and Insurance Operations liabilities 1,822 5,813 Non-Current Liabilities Long-term debt 29,594 33,384 Postretirement benefits other than pensions 28,919 47,375 Pensions 25,178 11,381 Other liabilities and deferred income taxes 16,963 16,900 ------ ------ Total non-current liabilities 100,654 109,040 ------- ------- Total liabilities 176,387 184,363 Commitments and contingencies (Note 18) 814 1,614 Minority interests Stockholders' Deficit Preferred stock, no par value, authorized 6,000,000, no shares issued and outstanding - - Preference stock, $0.10 par value, authorized 100,000,000 shares, no shares issued and outstanding - - $1 2/3 par value common stock (2,000,000,000 shares authorized, 800,937,541 and 610,483,231 shares issued and outstanding at December 31, 2008, respectively, and 756,637,541 and 566,059,249 shares issued and outstanding at December 31, 2007, respectively) 1,017 943 Capital surplus (principally additional paid-in capital) 15,755 15,319 Accumulated deficit (70,610) (39,392) Accumulated other comprehensive loss (32,316) (13,964) -------- -------- Total stockholders' deficit (86,154) (37,094) -------- -------- Total liabilities, minority interests, and stockholders' deficit $91,047 $148,883 ========== ==========

SOURCE General Motors Corporation

Source: PR Newswire

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